In November I read an article in the Montreal Gazette – Thinking small: Rooted in South Asia, Microcredit movement’s branches have spread to Quebec. The article was about Mohammad Hassan who started Jobra Centre, Inc. in Montreal, an organization that helps with the microcredit process (which they call “community loans” locally.)

In a developing country, a microcredit might be as small as a couple hundred dollars. In Canada, anything under $20,000-$25,000 is considered a microloan. $20-$25k is still a good chunk of change, but with the right government programs and corporate involvement, it wouldn’t be hard to give out a lot of good loans to people.

It’s already happening too. The article references one success story in Montreal, a diaper company called Bummies. It got off the ground with a loan of less than $25,000 from l’Association Communautaire d’Empreunt de Montreal (ACEM). Bummies now does over a million dollars in business, and supports 30 stable jobs. That’s amazing.

The more I think about microcredits the more excited I get. I wonder if my donations to developing nations would be more effective in the form of microloans versus hand-outs. What if I banded together with a few other entrepreneurs and we started finding ways of loaning small amounts of money to entrepreneurs all over the world? I’m not talking about $25,000 loans, I’m talking $500 loans. I can’t get this idea out of my head…

I love the idea of microcredit – both locally and internationally. Sure, an entrepreneur in Canada or the US is unlikely to get far on $500, and I don’t have $20,000 to give, but there’s absolutely no reason I can’t be an advocate to government (and wealthier friends/contacts) about supporting this idea. And internationally it seems obvious that microcredit can be successful.

Entrepreneurs are always your most passionate, aggressive and success-focused people. Entrepreneurs exist in all colors, shapes and nationalities. Point anywhere on the map and there’s bound to be an entrepreneur there itching to get started. They create jobs. They create wealth. Entrepreneurs can pick themselves up by the bootstraps and make something happen, and in doing so, they pick up everyone else around them.

Somehow, someway in 2007 I’m going to get my hands dirty in the world of microcredit. Wanna join me?

Please check out these resources for more information:

• The World Wide Web Virtual Library on Microcredit and Microfinance
• Grameen Foundation
• Microcredit on Wikipedia

Post from: EveryJoe

The Power of Microcredits

It should be pointed out that Grameen Bank has been very successful making money from microcredits. They’re not a non-profit organization. But in many ways that’s precisely the point; you can help and make money at the same time.

Some might argue the moral implications of getting rich off the poor, but Muhammad’s goal is to help the poor rise up with opportunities they would have never had. And that’s gotta be inspiring for every entrepreneur out there.

It’s all about social entrepreneurship.

The idea behind social entrepreneurship is that people find opportunities to create and develop businesses designed to help remedy a social problem and be successful financially. A social entrepreneur won’t measure success solely by profits, their contribution to society is what really matters.

The idea of blending money-making and helping is powerful, and opens up all kinds of ideas and possibilities.

Social entrepreneurship isn’t new. There are examples dating way back, but there’s no question that it’s taking hold as a movement today. And it makes sense. People recognize that donations and hand-outs can help but they don’t really solve problems. Creative, successful people are looking for ways to help, and applying their expertise, energy and inspiration to solve social problems will be more successful than another aid concert or donation drive.

I’m not saying you shouldn’t donate money. Please do. Pick one of a million causes this time of year and help someone.

But for the entrepreneurs among us, there’s a better way. We need to find ways of creating businesses that help. There’s always a better way of doing things, and entrepreneurs are there to find those ways. Entrepreneurs solve problems and attack them with vigor. Social problems like poverty, hunger, poor education, health system meltdowns, etc. need the help of entrepreneurs.

Social entrepreneurship is not about taking some of the money your business earns and giving it to charity. Yes, that helps. Do it. But social entrepreneurship is more than that. And after charities make what little dent they can, and government bumbles around as ineffective as they usually are, who steps up to the plate?

Social entrepreneurs.

I want to be a social entrepreneur. I have to find a way. I hope you’ll take a look too and use your genius to help.

Go check out these resources on social entrepreneurship:

• The Skoll Foundation
• The Canadian Social Entrepreneurship Society
• Ashoka

Post from: EveryJoe

Social Entrepreneurship is Important